Industry News

Serviced v leased - London compares 19th January 2018

The cost of a flexible workspace is nearly half that of a traditional office space in London – the second biggest price difference in a major global city, according to research from Instant Group.

According to the data, the cost of a flexible workstation in the UK capital is $11,931 (£8,800) a year, 47% cheaper than the $22,631 (£16,689) that a conventional desk costs.Hong Kong, home to the most expensive workspaces in the world at $27,432 a year, offers a 72% discount with flexible space.

Costs are expected to stay comparatively low in the city, with continued supply growth following a 19% increase in co-working space last year.Cities such as Tokyo and Sydney also offer a discount of more than 40% to traditional workspace.

The difference is markedly smaller in New York, where permanent office space costs close to $16,000 a year and flexible space is just 16% less at $13,440.

Sean Lynch, managing director for Instant Asia Pacific, said: “Co-working has grown dynamically in the major cities across Asia-Pacific, but the number of centres is still relatively low compared to London and New York.“So we would anticipate further growth in supply in the coming year, which will keep costs low.”